What are rights of an obligor regarding bank guarantee in Vietnam?

What are rights of an obligor regarding bank guarantee in Vietnam?

Pursuant to Clause 1 Article 31 of the Circular 11/2022/TT-NHNN (takes effect from 01/04/2023) stipulating rights of an obligor regarding bank guarantee in Vietnam as follows:

1. An obligor is entitled to:

a) refuse requests of the guarantor or counter-guarantor which are not conformable with the agreements specified in the guarantee issuance agreement or guarantee commitment;

b) request the the guarantor or counter-guarantor to perform their agreed-upon obligations and responsibilities;

c) File a lawsuit in accordance with regulations of law when the guarantor or counter-guarantor is in breach of their agreed-upon obligations;

d) Transfer their rights and obligations as agreed upon with relevant parties in conformity with regulations of law. Perform their rights and obligations in accordance with regulations of law when relevant parties transfer their guarantee rights and obligations in respect of the guaranteed amount;

dd) Check the authenticity of the guarantee commitment;

e) Perform other rights as agreed upon between the parties in conformity with regulations of law.

What are obligations of an obligor regarding bank guarantee in Vietnam?

Pursuant to Clause 2 Article 31 of the Circular 11/2022/TT-NHNN (takes effect from 01/04/2023) stipulating obligations of an obligor regarding bank guarantee in Vietnam as follows:

2. An obligor is obliged to:

a) provide adequate, accurate and truthful information and documents concerning the guarantee and assume legal responsibility for the accuracy, truthfulness and adequacy of their provided information and documents;

b) perform obligations and responsibilities as agreed upon in the guarantee issuance agreement in a sufficient and timely manner;

c) repay the amounts paid by the guarantor or counter-guarantor to fulfill guarantee obligations as agreed upon in the guarantee issuance agreement or guarantee commitment, and incur any costs associated with the fulfillment of guarantee obligations;

d) bear the inspection of the guarantor or counter-guarantor during fulfillment of guaranteed obligations; submit reports on operations concerning the guarantee transaction to the guarantor or counter-guarantor;

dd) cooperate with the guarantor or counter-guarantor and relevant parties in disposing of collateral (if any);

e) discharge other obligations as agreed upon between the parties in conformity with regulations of law.

What are rights and obligations of an obligee regarding bank guarantee in Vietnam?

Pursuant to Article 32 of the Circular 11/2022/TT-NHNN (takes effect from 01/04/2023) stipulating rights and obligations of an obligee regarding bank guarantee in Vietnam as follows:

1. An obligee is entitled to:

a) request the guarantor or guarantee-confirmation giver to perform their obligations and responsibilities under the guarantee commitment;

b) make complaint against the guarantor or guarantee-confirmation giver within 05 working days from the receipt of notice of refusal if reasons for refusal to fulfill guarantee obligations are found not conformable with conditions for fulfillment of guarantee obligations specified in the guarantee commitment.

c) file a lawsuit in accordance with regulations of law when the guarantor or guarantee-confirmation giver is in breach of their agreed-upon obligations;

d) check the authenticity of the guarantee commitment;

dd) transfer their rights and obligations to another organization or individual as agreed upon with relevant parties in conformity with regulations of law;

e) grant exemption from fulfillment of guarantee obligations to the guarantor or guarantee-confirmation giver;

g) perform other rights as agreed upon between the parties in conformity with regulations of law.

2. An obligee is obliged to:

a) fully and correctly perform the obligations under contracts concerning the guarantee obligations; correctly perform the obligations under the guarantee commitment (if any);

b) inform the guarantor, the guarantee-confirmation giver and relevant parties of any sign or act of violation committed by the obligor;

c) assume legal responsibility for the accuracy, adequacy, legitimacy and validity of documents submitted under the guarantee commitment and information provided in the application for fulfillment of guarantee obligations of the obligee;

d) discharge other obligations as agreed upon between the parties in conformity with regulations of law.

Best regards!